A budget is a matrix of objectives in terms of cost, tasks, certain quality parameters and time frames. It is not a best-case , worst-case or most probably case scenario, a forecast to wow investors or a means at winning a contract. A budget is a rule book. Any deviation from budget (i.e., a negative variance) is something that emerges from any of the following sources of error. And these errors lead to missed deadlines, cost overruns , and quality control deficiencies if: 1 ) A budget is created as selling tool or as a means of winning financing or a contract; 2 ) A budget does not provide sufficient margin for contingencies and other critical path issues, interruptions and deviations from trajectory; 3 ) A budget is put together with the thought in mind that once the project is sufficiently underway, the client, investor or manager will be sufficiently emotionally invested that he or she will not regard the project as a failure, and that additional resources (such as time and fund...
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